Apple's ubiquitous iTunes Store and its associated services are forecast to generate a staggering $13 billion in revenues during the company's fiscal 2013, growing at an expected rate of nearly 40% over the next three years as publishers trend towards its iBook format.

That's according to Global Equities Research analyst Trip Chowdhry, who singled out iBooks as one of the primary growth catalysts behind the Cupertino-based company's digital download business, explaining that his research shows that book publishers themselves have begun to prefer AppleÂs iBook ÂePubÂ format over that of AmazonÂs market-leading Kindle format.Â*

He further suggests that the quality of the iBooks app offered by Apple far exceeds that of the Kindle app supplied by Amazon, which may influence where books are being bought. "[R]esearch with students indicates that they would rather have books on iPad vs. Kindle," he said, adding that in terms of usability on a scale of 10, the iBook app is "probably 8 and Kindle application on iPad is probably [a] 5."

The Kindle application "lacks the finish and crispness of an iBook," he said.

Alongside the recently announced milestone of 100,000 iPad apps on the AppStore, statistics show the typical number of apps found on the average user's iPad has at least tripled in the past six months, rising from fifteen to more than forty-five.Â*

As such, Chowdhry has increased his revenue projections for Apple's recently ended fiscal third quarter by taking into account the rapid rise of AppleÂs iBook and App Store businesses, the company's presumably strong ÂBack To SchoolÂ sales and its market share successes in the enterprise.

He's now forecasting revenues of $24.80 billion to go along with earnings of $5.81 a share, showing a year-over-year increase of 58 percent and 65 percent, respectively, for the three-month period ended June. On average, analysts polled by Thomson Reuters expect Apple to earn $5.69 per share on sales of $24.67 billion.

For the entire fiscal year of 2011, Chowdhry estimates call for revenues of $104.08 billion and earnings of $25.09, showcasing a 59.8 percent and 65.6 percent increase from last year. This compares to Street consensus estimates of $24.82 per share on revenues of $103.52 billion.

iTunes was released 10 years ago on Jan. 9, with the iTunes Store being launched alongside Version 4. Since then, over 10 billion tracks have been downloaded, making it the most successful music store in history.

it's the pricing. Apple is giving publishers what they have always had, control over their pricing. This is annoying as a consumer sometimes, when a book is 2 or 3 bucks more than on kindle. It's annoying on iTunes too at times - especially with old TV shows like Star trek and Buffy.

But Apple seems to have demonstrated with the music market that eventually it can win the content owners over to sensible pricing once they see the volume. So here's hoping.

it's the pricing. Apple is giving publishers what they have always had, control over their pricing. This is annoying as a consumer sometimes, when a book is 2 or 3 bucks more than on kindle. It's annoying on iTunes too at times - especially with old TV shows like Star trek and Buffy.

But Apple seems to have demonstrated with the music market that eventually it can win the content owners over to sensible pricing once they see the volume. So here's hoping.

I don't believe that Amazon could have kept the pricing model they had. Every article about it, from people close to the situation, said that Amazon was paying publishers more than they were charging consumers. That's a model that will fail.

What Amazon was doing was to attempt to build up a service that monopolized the industry will its lower selling prices, and then to bring the hammer down on publishers with demands that they lower their prices to Amazon. Likely, they would have also raised prices to consumers as well.

All that Apple did was to rectify this pricing mismatch. We all want cheaper books, as we want cheaper everything, something that's made China the premiere manufacturing country. But we can't always get what we want, because it has to work for all sides. If one part of the triangle of publishers, sellers and buyers is too far out of wack, the entire thing falls apart.

I think we will see slightly falling e-book prices over time, and some are pretty cheap now. I don't blame publishers for trying to make their money back early on, as that's what all companies do

Remember when he said that people don't read books anymore? I think he said that most people only read one book a year or so.

But smart people change their minds when the evidence shows them otherwise. I would imagine that when the Kindle's sales rose to a certain point, even though Amazon has, so far, refused to give sales numbers, Apple decided that it was a worthy area to get involved in.

Remember when he said that people don't read books anymore? I think he said that most people only read one book a year or so.

But smart people change their minds when the evidence shows them otherwise. I would imagine that when the Kindle's sales rose to a certain point, even though Amazon has, so far, refused to give sales numbers, Apple decided that it was a worthy area to get involved in.

it's the pricing. Apple is giving publishers what they have always had, control over their pricing. This is annoying as a consumer sometimes, when a book is 2 or 3 bucks more than on kindle. It's annoying on iTunes too at times - especially with old TV shows like Star trek and Buffy.

But Apple seems to have demonstrated with the music market that eventually it can win the content owners over to sensible pricing once they see the volume. So here's hoping.

But didn't Apple control music pricing on iTunes from day 1? With books, they lack control and are less likely to gain leverage once you don't have it.

I began reading a trilogy a while ago. I had bought the first two books in paperback and when it came time to get number three, I had gotten an iPad 2 by that time, so I decided to get the last book electronically and read it on my iPad as an experiment.

I'm now done with that last book and my conclusion is that I don't really ever see myself buying a real paper book ever again. It makes no sense. I like to set the color to sepia and I turn the brightness down, and it comes pretty close to the feel of reading on real paper in my opinion. I don't read outside, so that's not really a concern of mine. I'm going on vacation soon, and my iPad is already loaded up with a few books to keep me busy if the weather is lousy.

I began reading a trilogy a while ago. I had bought the first two books in paperback and when it came time to get number three, I had gotten an iPad 2 by that time, so I decided to get the last book electronically and read it on my iPad as an experiment.

I'm now done with that last book and my conclusion is that I don't really ever see myself buying a real paper book ever again. It makes no sense. I like to set the color to sepia and I turn the brightness down, and it comes pretty close to the feel of reading on real paper in my opinion. I don't read outside, so that's not really a concern of mine. I'm going on vacation soon, and my iPad is already loaded up with a few books to keep me busy if the weather is lousy.

I'm the same way about it. I've also not renewed subs to magazines when they became available from Zinio. I'm much happier without all that extra paper on many shelves.

Remember when he said that people don't read books anymore? I think he said that most people only read one book a year or so.

But smart people change their minds when the evidence shows them otherwise. I would imagine that when the Kindle's sales rose to a certain point, even though Amazon has, so far, refused to give sales numbers, Apple decided that it was a worthy area to get involved in.

I hate to say it, but I hate using physical books because it meant I had to carry them around in one way or another, so it discouraged me from reading. Sad but true.

My iPad changed all that. I have probably read more in the last couple months since getting my iPad than I have in the past 4-5 years. It's just convenient to carry that around.

Yep. Then I can unhook my 27" iMac from its stand, tape a multi-touch trackpad on the bottom, and I just made myself the world's biggest iPad that I can enjoy from the comfort of my sofa.

I don't know about iBooks, but that's exactly how I buy my apps for the iPad. iTunes on OSX is better for app shopping than the built in app on the iPad, so I usually buy my iPad apps looking at my 27" monitor and using a multi touch trackpad.

I don't know about iBooks, but that's exactly how I buy my apps for the iPad. iTunes on OSX is better for app shopping than the built in app on the iPad, so I usually buy my iPad apps looking at my 27" monitor and using a multi touch trackpad.

Well then.. I presume you're maybe one room away to haul that iMac on the sofa right?

"...his research shows that book publishers themselves have begun to prefer Apple’s iBook ‘ePub’ format over that of Amazon’s market-leading Kindle format.".

This statement is pure sophistry. Both Apple and Amazon pay the publisher the same amount for books. The "format" is irrelevant. The author's goal seems to be to move markets not relate relevant truths. FWIW, I suspect most of the posters herewith have never used a Kindle.

Once Apple adds an iBooks app for mac I'll actually take it seriously and buy books from the iBooks store

But first we'll need to be able to actually BUY books from the international store. Sadly it's just for US users. International users only have access to old, free Project Gutenberg books. So for me, the iBook store is just a gimmick people keep talking about... Just like iTunes movies.

But first we'll need to be able to actually BUY books from the international store. Sadly it's just for US users. International users only have access to old, free Project Gutenberg books. So for me, the iBook store is just a gimmick people keep talking about... Just like iTunes movies.

Huh? Where are you located? Here in Australia we have all the major publishers in the iBookstore. Sadly not all of the publishers books are there though, like I couldn't find 'The Girl with the Dragon Tattoo' but other popular stuff like the Twilight novels are all in there.